With all the competition out there, accidental entrepreneurs face a big challenge for 2016: Survival

Mastering the art of accidental entrepreneurship will be key for unemployed young people who are launching service businesses, and competing with thousands of middle-aged Canadians, with deep experience

Across Canada, thousands of gifted and motivated people are starting businesses to take advantage of exciting new opportunities. At the same time, many more Canadians are starting businesses because they have no other option.

Young people who can’t find meaningful work – or any job – are launching service businesses from web design to dog walking. And they’re competing with thousands of middle-aged Canadians, with deep experience in retail, resources, transportation and middle management, whose skills have been declared surplus by belt-tightening employers.

All of these newly minted entrepreneurs have heard the cliché that there’s never been a better time to start a business. And in many ways, it’s true. Markets are fluid, everyone is looking for new experiences or solutions, and consumer trends favour narrow specialists over broad generalists.

But the challenge for 2016 is this: How will all these accidental entrepreneurs survive?

A business is not like any hobby, job or sideline you’ve had before. No matter what you studied, or how many promotions you earned in your march up the corporate ladder, running your own business presents an overwhelming tsunami of challenges. How do you create a brand, set standards and protocols, find and train staff, develop your marketing, master bookkeeping, manage taxes, and figure out social media, and still have time to meet customers?

Running a business is an exercise in humility. If running a business was your second choice, here are six tips for mastering the art of accidental entrepreneurship:

Business is about people. If you’re expecting to run a business from your spare bedroom, think again. Business growth comes from getting out and meeting customers in person, answering questions and overcoming objections with friendly, positive language. It’s not you against the world: it’s you and your ever-growing network of allies reaching out to contacts and prospects who need your help.

Have a business plan. It’s common now for startups to say, “Our market is changing so fast we don’t have time to plan.” Yes, your startup has to be agile and flexible, and you don’t need a 60-page business plan, but you have to start with some calculated plan to be flexible about. Many forgo plans in favour of the newer “business model canvas,” a template that helps you visualize your key activities, partners, resources, costs and revenue streams on one (big) sheet of paper. But to create a credible canvas, you need a planning process that studies the market, talks to key players, uncovers new needs, and assesses your ability to meet those needs at competitive prices.

Take time to plan. Cold-call industry leaders and ask for 15-minute meetings to discuss your concept. Study the competition, their value propositions and cost structures. Given their “Ready, Fire, Aim” mentality, most entrepreneurs won’t do this work — handing you a clear competitive advantage.

Budget for a slow start. You won’t believe how long a new business can take to find traction. People who promise to buy will stall and stall until you realize that prospects who say “No” are your best friends. You’ve heard of the bankers who look at people’s business plans and make their lending decisions after doubling applicants’ costs projections and halving their revenue forecasts? I’ve known bankers who take it a step further; they assess your business by tripling your costs and chopping your sales forecasts by two-thirds. Be optimistic, by all means, but manage for the worst-case scenario.

Forget balance. Work-life balance is for the salaried. Running a business requires all-in effort. Surviving the first year or two will take all your time and energy. You’ll work nights because you spend the days dealing with customers, staff and suppliers. If things go well, balance will come. But let your spouse or dependents know that your business needs all the time you can spare — and more.

Stick out. I wrote a whole column on this last May. Every market is too crowded, so every business needs to stand out by offering lower prices, higher quality or better service. But standing out isn’t enough – you must stick out. That means taking steps to make sure no one can miss your presence in the marketplace.

Larry Wong/Postmedia Files

My favourite example is a PC-repair business in London, Ont., called Those Friggin Computers. The owner tells me the name makes people laugh and builds trust. More importantly, they never forget the brand. Men in Kilts is a Vancouver-based window-washing business that has franchises in three provinces and five states, which would never have occurred had the company stuck with its original name, Nic’s Window Cleaning.

Surprise customers constantly; overwhelm them with value. Measure everything you do so you learn what works. As the saying goes, “Don’t be afraid of being different. Be afraid of being the same as everyone else.”

Always be curious. Take nothing for granted. The best entrepreneurs ask lots of questions. Find out how things work and why, not just in your business but in the business models of your customers and suppliers, too. The best business-building question you can ask: “Is there anything else can we do to help you?” One entrepreneur I know says this question alone has generated millions of dollars of new business a year.

It’s easy to get into entrepreneurship through a side door. But success never comes by accident.

Rick Spence is a writer, consultant and speaker specializing in entrepreneurship.